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total amount of income is about UAH 5B. More than 400 objects (in particular, 70 enterprises) have found private owners - Ukrainian businesses that, despite the war, invest in their development, emphasizing the State Property Fund of Ukraine. It is noted that for 12 months, the volume of privatization funds is at the highest level in the last 10 years. The top properties that were sold at the highest price include the Hermitage Hotel – UAH 311M, Ukroboronresursy for UAH 211M, Rivnetorf for UAH 205M, Ust-Dunaysk Port for UAH 201M, Lviv Jewelry Plant UAH 185M, the Marylivskyi, Storonybabskyi, Vuzlivskyi and Zalozetskyi distilleries for UAH 150M, UAH 142M, UAH 130M and UAH 120M, respectively.
The State Property Fund of Ukraine is preparing to resume large-scale privatization. The agency is ready to offer several assets to buyers, said the head of the SPFU, Rustem Umyerov. Among them are the Odesa Port Plant, Centernergo, the United Mining and Chemical Company, the state's share of the Ocean Plaza Shopping Center, and Demurinsky GZK. Umyerov explained that the SPFU's priority is the creation of a Sovereign Fund, which will include 1% of strategic state objects. "Also, this document will determine the criteria by which state assets will be included," the official said. According to Umyerov, the fund plans to include enterprises from 6 to 11 industries in the Sovereign Fund. In the future, they will become mouthpieces for the recovery of the Ukrainian economy. Another goal of the department - effective corporate governance. To do this, the fund's new team audited the state-owned enterprises managed by the fund and found that most of them should be sent for liquidation or bankruptcy.
The Bilhorod-Dnistrovskyi port will be sold for the third time in a month. This time the auction format will be changed, the Prozorro.Sales website reports. Previously, the government tried to sell the port in a traditional English auction format with a gradual increase in the starting price. However, on August 23, a hybrid Dutch auction is scheduled. It involves a step-by-step decrease in the starting price of the lot until one of the participants stops the decline. Next is a stage of closed price offers: other participants can offer a price higher than the fixed one. The winner is the one who offered the highest amount. However, the participant who stopped the decline in the first stage has the right to the last move and can beat the opponent's maximum price in the third stage. The port was planned to be privatized even before the war. The sixth auction scheduled for August 15 did not occur due to a lack of participants. The starting price of the lot was UAH 92.45M ($2.52M) - half of the initial price.
A 100-year-old Lviv region distillery and a Kyiv meat processing plant are for sale in Ukraine. The State Property Fund of Ukraine submitted for the privatization the Strutyn distillery in the Lviv region. The enterprise was founded in 1906 and was modernized in 2019. The plant produces ethyl alcohol and can produce 22,000 liters per day. The facility consists of 24 real estate objects with a total area of 15,506 square meters, including administrative buildings, warehouses, granaries, shops, and workshops. Nine of the company's vehicles and more than 600 pieces of equipment are also included. The starting bid is UAH 31.3M. The auction winner must also repay UAH 31.3M of the company's tax and payroll debts. The auction is scheduled for September 5. The Kyiv Meat Processing Plant is also scheduled for sale with a starting bid of UAH 186.9M. The business' main products are meat, sausage products, semi-finished and canned meat products, edible fats, and animal feed. The auction is scheduled for August 22.
47 UKRAINE Country Report September 2023 www.intellinews.com